SBI ATM Franchise Business: How To Get Passive Income With SBI White Lable ATM?
SBI ATM Franchise: Are you looking for a quality earning opportunity? What is better than a job and a small business? Great, this article will help you to get one of the finest business opportunities that will never be stopped. So Bank ATM business can help you earn money from home.
SBI ATM Franchise - An Overview
In India, SBI is one of the most-used banks and it is expanding more and more every year. There are numerous reasons why people open up accounts on SBI and are willing to conduct business with the company as well. The best way to partner up with such a famous bank is by opening an ATM franchise. You can earn a good amount of profit if you have opened the ATM in the right place.
Opening an SBI ATM franchise is one of the best business opportunities out there. There are numerous reasons why you should choose an SBI ATM franchise as your primary business to earn profit. Some of the notable reasons to open an SBI ATM franchise are given below:-
- SBI as a company has one of the largest and well-established networks in the country. This proves that if your ATM franchise is having some trouble it will take very less time for that to be solved by the higher department of the company.
- The profit rate or the commission offered by this bank company is quite good as compared to other banks. The owner of the ATM franchise receives Rs 8 for every cash transaction after the ATM is deployed and the people begin using it.
- SBI is a government corporation and that is one of the reasons why you can feel secure after you have partnered up with the company.
- SBI Bank has also been voted as the most stable bank in the country. It is the largest Indian bank with 1/4th market share. Other than this, this governmental bank serves over 48 crore customers through its vast network all across the country.
- When you partner up with such a bank your ATM franchise gets a good reputation and brand goodwill from the market. There are many users of the bank who love the ATM service that is offered by the bank.
These are some of the reasons why you should go for an SBI ATM franchise if you fulfil all the terms, conditions, and requirements as per the banking guidelines. Now in this article, we will talk about how the SBI ATM franchise works, the advantages, and disadvantages of the SBI ATM franchise, what are the risks involved, and many more.
How SBI ATM Franchis Works?
Half of the work is completed when you pass all the guidelines or requirements to open an SBI ATM. if you follow all the requirements strictly then the further work to open an ATM becomes a lot easier.
To get an SBI ATM franchise you need to get approval for it. After you get all the approvals, you are then required to pay Rs 2 lakhs as a security deposit to the company and Rs 3 lakhs as working capital.
Yes, the total investment required to open an SBI ATM franchise is Rs 5 lakhs and after you have paid all these you will simply get the ATM franchise from the company.
What Is The Process to Get Franchise of SBI ATM Machine?
If you are willing to open SBI ATM franchise then you are required to contact three companies and they are Tata Indicash, Muthoot ATM, and India One ATM. These are the companies that give all the permissions and details on behalf of SBI. Now, here is how you can complete the process to get an SBI ATM franchise:-
- Visit the official Muthoot ATM Group website
- You will see an application form which needs to be filled very carefully
- Some of the details that will be asked are name, gender, father’s name, mobile number and many more
- At the button of the application form you will see an option “Applying For” this is where you need to select State Bank of India
- After you have filled all the information make sure the recheck them and finally click on the submit button
Advantages and Disadvantages of SBI ATM Franchise
Below are the advantages and disadvantages of the SBI ATM franchise:-
Advantages | Disadvantages |
Easy to use | There should not be any ATMs within 100m radius |
For every cash transaction Rs 8 and non-cash transaction Rs 2 | Land required 50-80 feet |
Many people often chooses SBI ATM over any other ATMs. | There must be 24-hour power supply |
Risk Involved in an ATM Franchise
Here are some risks involved in ATM franchise:-
- Even after investing Rs 5-7 lakhs to open an SBI ATM franchise, there is a specific time when you will get your ROI.
- If you are willing to get rich by opening this business then you should look for other options because it can give you a very slow income.
- You being the owner have some major responsibilities to check daily. These responsibilities include routine checks, machine checks, camera checks if there is any technical error and many more.
- A background check of the owner is mostly done by the companies and if you have any bad records you will not be given this business opportunity.
The SBI ATM franchise cost and offer include installing a suitable ATM or White Label ATM (WLA) from reputable SBI-approved companies like India 1, Muthoot Finance, TATA Indicash, etc.
TATA is a well-known and well-established ATM brand, and it may be the SBI ATM franchise offer's oldest and most reliable ATM installation partner. These companies are in charge of installing ATMs, while SBI negotiates and checks the franchise offer for ATMs.
SBI Appointed Other companies like TATA indicash, India1 Atm like companies do sell the ATM. These companies are given contracts for ATM installation on behalf of banks.
However, you have to apply for this with the bank itself. There are certain conditions and verification of the bank. After this, you get an ATM Franchise according to the franchise model.
What is an SBI White Label ATM?
ATMs have the names of the banks whose services and cash they offer, such as SBI, Bank of Baroda, ICICI, UCO Bank, etc. The ATM with the "white label" is not from a bank and does not have a bank's logo on it.
In 2012, RBI released the White Label ATM guidelines, and in 2013, the necessary permissions and licences were issued. Based on this rule, these white label ATMs can be set up by a legal entity that is not a bank and has a net worth of more than 100 Cr.
Tata Communications Payment Solutions Limited was the first company to get permission to open "Indicash"-branded white-label ATMs.Today, about 15 of these kinds of companies have their own ATMs. Muthoot Finance ATMs, India One ATMs, AGS ATMs, Prizm Payments ATMs, and Australian BTI ATMs are all popular white-label ATM brands.
Watch Our detailed video on the SBI ATM franchise
Requirements to Start a SBI ATM Franchise in 2024
To obtain a franchise of an ATM the requirements in general are:
An area of 50 to 80 sq ft and also the the distance between the two ATM must be a minimum of 100 meters far off from each other. There must be an ultimate flow of power and at least 1kw electricity connection.
Many peoples believe that the ATM of big banks like SBI, ICICI, HDFC. etc are installed by the bank itself. The banks have appointment with big brands like TATA Indiacash, Muthoot ATM, and India One ATM. In order to get a franchise of SBI one has to visit the official website of the bank and apply for it.
Here are the requirements :
- 50-80 SQF Area.
- 100 Meter distance from Other ATM
- Ground floor with good visibility
- 24 Hrs Electricity supply with 1 KW electricity connection
- ATM should have atleast 300 Daily transection
- Fixed roof for ATM Business
- NOC from socity and authority to use V-SAT
Documents required for SBI ATM Franchise
Their are certain necessary documents required to get a SBI atm franchise, here we have mentioned all the necessary documents required for SBI ATM Franchise :
For Identity verification
- Aadhaar Card ,
- Pan Card ,
- Voter Card
Address Proof
- Rashan Card
- Electricity Bill
Other Details
- Bank Account /Passbook
- Photograph
- Email id
- Phone number
- GST Number
- Financial Documents
SBI ATM Franchise Investment Required
A security deposit of 2 lakhs has to be kept for SBI ATM. It is fully refundable. Apart from this, working capital of Rs 3 lakh is necessary. The total investment will be up to Rs 5 lakh. You can apply for SBI ATM Franchise from Indiacash website. It is the largest and oldest company in the country.
Profit from SBI's State ATM franchise
The SBI ATM franchise offer is a low-cost investment that has a good chance of turning into a profitable small business. You can start your own business, use your space, and even help someone find a different job. Passive income can be anywhere from 45,000/- to 90,000/- per month. This happens when between 300 and 500 transactions take place at the ATM every day.
The SBI franchise offer pays 8 for every cash transaction and 2 for every other transaction. Non-cash transactions include things like checking your account balance, getting a summary of your account, etc.
When calculated annually, the ROI (return on investment) is expected to be between 33 and 50%. This means you need to make at least 45,000 a month if you do 300 transactions a day. If you raise the minimum number of transactions to 500 per day, you can make at least 90,000 per month.
What is the earning formula?
In SBI ATM Franchisee, Rs.8 is available on every cash transaction and Rs.2 on the non-cash transactions. The return on investment is 33-50% on an annual basis.
If there are 250 transactions per day, of which 65 percent are cash transactions and 35 percent non-cash transactions, then the monthly income will be close to 45 thousand rupees. At the same time, a commission of about 88-90 thousand will be made on 500 transactions daily.
How to Apply for SBI ATM Franchise?
The online application can be made for SBI ATM Franchisee from the official website of the companies. Companies that install ATMs are different. Most of these contracts are with Indicash, Muthoot ATM, and India One ATM.
How to get SBI ATM Franchise
- Tata Indicash - www.indicash.co.in
- Muthoot ATM - www.muthootatm.com/suggest-atm.html
- India One ATM - india1atm.in/rent-your-space